Additional Resources

In 1985, the Local Government Commission created a task force to examine municipalities experiencing economic and fiscal distress as a result of structural changes in their local economies or managerial deficiencies. Resulting from this effort was the enactment of the Municipal Financial Recovery Act, commonly known as Act 47 of 1987. In its 25 years of existence, 27 municipalities have entered Act 47 seeking recovery, but only six have had their distressed status rescinded by the Secretary of the Department of Community and Economic Development. The statute's effectiveness has been questioned at times with the viability of some distressed municipalities being uncertain. As a result of public hearings in late 2011 and the continued issues with the Act 47 process in general, the Commission decided in late 2012 to again form a task force to undertake a comprehensive review of Act 47 in an attempt to enhance its efficacy. The following documents reflect deliberations of the Act 47 2013 Task Force and its four subcommittees, including subcommittee supporting information. The culminating 2013 Task Force Report contains background on Act 47, issues with Act 47 and affected municipalities, the rationale for addressing issues, and the resultant legislation to remedy Act 47. Identical legislation has been introduced by the Commission as Senate Bill 1157 of 2013 and House Bill 1773 of 2013.